The pound dropped against the dollar and euro after the Bank of England hiked interest rates

LONDON — The pound dropped against the dollar and euro after the Bank of England voted to raise interest rates from 0.25% to 0.5%.

Here is the chart as of 4.06 p.m. BST (12.06 p.m. ET):

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The pound was also on course for its worst day against the euro for over a year, according to financial analysts FactSet. It was down 1.76% at 16.06 p.m. BST (12.06 p.m. ET):

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Speaking of the MPC's decision, Andrew Sentance, senior economic adviser at PwC, said: "The Monetary Policy Committee (MPC) is right to raise interest rates, even though economic growth has been relatively disappointing so far this year.

"Other economic data - in particular high inflation driven by the weakness of the pound and the low level of unemployment - are much more supportive of a rise in interest rates.

"In addition, the MPC faces a long-term challenge of raising interest rates back to some sort of normal level after an exceptional and unprecedented decade of low rates since the financial crisis.

"This month's MPC decision is an important signal to the public that the era of very low interest rates is coming to an end. Further interest rate increases should be slow and gradual, but this is the first step along that road."